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Alphabet rallies as Google Search unfazed by challenge from Microsoft’s Bing

(Reuters) – Alphabet rallied nearly 7% on Wednesday on signs its dominant Google Search business was faring well in an uncertain advertising market and remained unscathed in the face of competition from an AI-powered Microsoft Bing.

The world’s fourth most valuable firm was set add more than $100 billion to its market capitalization, based on premarket movements. Its shares have rallied 39% this year on the hype around artificial intelligence.

Wall Street analysts said the company’s better-than-expected quarterly earnings showed the strong position of Google Search even as advertisers remain cautious, steady growth in the cloud business and that Google was well placed to compete with Microsoft in AI.